ONBOARDING PROGRAMS: THE CONSUMER PERSPECTIVE (Feb 2017)

Building and Expanding Relationships

Communication Strategies

Multi-Channel Integration

Key Finding from a Previous Phoenix SYNERGISTICS Research Survey:

According to the 2015 Phoenix SYNERGISTICS study, Checking Account Acquisition and Retention Strategies, more than four in ten of those who opened their checking account first at their institution say they obtained another account within the first six months.

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Highlights of the Study

This study examines the consumer experience with the onboarding process including communication strategies and contact methods, cross-selling and follow-up. The fragmentation of consumer banking relationships is also explored.

National Internet Survey – The survey will include 1,000 online interviews with consumers age 18 or older.

Key Dates

November 25, 2016 – Charter fee/Intro pricing ends.

November 25, 2016 – Final acceptance of comments on questionnaire.

February 2017 – Project Report available.

Strategic Questions

  • How widespread and numerous are multiple account/service relationships with the main financial provider among consumer households? To what extent do checking accounts play a “lead role”  in this?
  • What is the profile of recent account opening activity – within the past five years – among consumer households? What accounts or services have been obtained?  Did comparison shopping take place?  Which channels or sources of information were utilized?  What product or provider features were important?  Which application channels were used?
  • Did consumers experience onboarding tactics during their most recent account opening – such as being asked about their additional financial needs, being informed about other accounts and services, or receiving welcome materials? Were other accounts and services obtained as a result of these efforts and what types?  Were other ancillary or value-added services obtained or used as a result of onboarding tactics?
  • What experience have consumers had with onboarding tactics during a short time frame after their most recent account opening? How soon were they contacted and by what channels?  What were the outcomes of these contacts in terms of obtaining any additional accounts or services or using any ancillary or value-added services?
  • What attitudinal or perceptual factors impact the onboarding process? Are customers receptive to being asked about their needs or do they regard it as an invasion of privacy?  How often do they want to be contacted by their institution, if at all?   What is the position of the main provider relationship in terms of obtaining additional accounts and services?
  • What preferences do consumers have for future financial shopping and onboarding activities – in terms of information channels and content, application methods, follow-up messages, and time frame for follow-up contact?
  • Are certain consumer segments more receptive to onboarding than others?  Are there indicators – such as demographic, behavioral, or attitudinal traits – that are useful for designing and targeting onboarding strategies and tactics?

Research Issues

  • Onboarding programs are receiving a great deal of attention in today’s financial marketplace.  These programs are designed to develop and enhance financial relationships from inception.  In essence, onboarding is a short-term strategy that can lead to long-term and loyal relationships.  There are a number of steps that can be part of the onboarding process.
  • The first step is often an assessment of customer needs when the product or service is first purchased.  This step can be followed with some form of thanking the customer for the purchase.  A series of steps can follow such as inquiries about product usage, satisfaction, and problems or concerns.  These steps can utilize a variety of forms of communication from traditional mail, email, telephone calls, as well as a mix of channels. It is valuable for these contacts to occur early in the relationship and that they are personal and frequent. As a result of these contacts, cross selling can either follow or additional sales may be an adjunct to the onboarding process.
  • While most onboarding is associated with checking accounts, purchases of all types of financial products and services may benefit from the onboarding process.  In developing and implementing onboarding programs, it is essential for providers to understand the consumer perspective. How do consumers respond to the onboarding process?  Do consumers consider some steps as valuable, while others are seen as too much of a good thing?  What channels are preferred?  This Phoenix SYNERGISTICS survey will examine these issues as well as others to provide financial institutions with clearer insight into the consumer perspective on the onboarding and sales process. [F250]